I think this project seems valuable for three main reasons:
Additionally, it is clear that servers like arXiv.org are highly resource-constrained (see https://www.scientificamerican.com/article/arxiv-org-reaches-a-milestone-and-a-reckoning/).
With that said, striking the right balance between openness and security is difficult, and this project might generate significant backlash or have unintended consequences. I wrote up some additional thoughts about this project after discussing it with Yonatan, so please reach out to me if you would like to read more about what this project might look like and why it might or might not be a good idea.
I would say two things about this.
EDIT: I am no longer leading this project, and after talking to a few biosecurity professionals, the project is on hold.